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Audio: Regulator unhappy with savings market

Audio: Regulator unhappy with savings market

Category: Savings

Updated: 11/07/2014
First Published: 11/07/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Earlier this week, Britain's financial regulator the FCA published the initial findings of a probe into the cash savings market because of concerns that competition isn't working in the interests of most consumers.

It found that a small minority of savers managed to get good rates by constantly comparing accounts and moving their money when necessary, but too many people forget about their savings and end up in accounts that pay very poor rates of interest.

This is because many of us put our money in an account, often on the basis of an introductory rate of interest, and leave it there. Once the introductory period ends, we forget about it and the interest rate reverts to a much lower level.

The other concern the regulator has is that people don't even bother to shop around when they open a savings account. The FCA found that people were more likely than not to open a savings account with their current account provider, irrespective of whether the rate is competitive or not.

Sylvia Waycot, Editor of Moneyfacts.co.uk, was asked to speak to Simon Mayo about how far this report can go and what she would like to see as a result of the review.




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